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Private Equity Boosts Growth In Specific Industries In Q1 2016

In 2016-Q1, Business Products & Services (B2B), Consumer Products & Services (B2C), and Information Technology received about three-fourths of U.S. private equity investment with $33 billion, $32 billion, and $31 billion in investment, respectively. Investment in Q1 fell in four industries (Financial Services, Healthcare, Materials & Resources, and Energy), while investment in Information Technology and Consumer Products & Services grew.

WASHINGTON – Today, the American Investment Council (AIC) released its Q1 2016 Industry Investment Report, highlighting the activity of private equity firms in specific industries.

According to the report, business products and services (business-to-business), consumer products and services (business-to-consumer), and information technology received about three-quarters of U.S. private equity investment in Q1 2016. Business products and services led the way with a total of $33 billion invested by private equity during the quarter, while consumer products and services and information technology followed closely behind at $32 billion and $31 billion, respectively.

“This report shows us the prevalence of private equity across the industries that drive our economy,” said AIC President and CEO Mike Sommers. “Private equity unlocks critical capital from industries ranging from information technology, consumer products and services, energy, and healthcare. This is critical to our country’s economic health.”

Reflecting market volatility in the earlier part of the year, energy, healthcare, and financial services saw declines in investment in Q1 2016. Consumer products and services saw an increase from $28 billion to $32 billion, and had the largest private equity deal of the quarter: Keurig Green Mountain at $13.9 billion. Private equity investment in information technology rose for the third consecutive quarter, indicating continued confidence in this sector by investors.

“I am encouraged by the rebound in investment in consumer products and services,” said AIC Vice President of Research Bronwyn Bailey. “An increase in the investments in the consumer sector typically signals growing confidence in consumer spending, and I expect these numbers to grow stronger in the second quarter.”

Industries included in the report are as follows: consumer products and services; business products and services; financial services; information technology; healthcare; energy; and materials and resources. Read the full report here.

About the American Investment Council

The American Investment Council (AIC) is an advocacy and resource organization established to develop and provide information about the private investment industry and its contributions to the long-term growth of the U.S. economy and retirement security of American workers. Member firms of the AIC consist of the country’s leading private equity and growth capital firms united by their successful partnerships with limited partners and American businesses. More information about the AIC can be found at www.investmentcouncil.org.